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HomeMy WebLinkAboutOrdinance No. 01-2013ORDINANCE NO. 01 -2013 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA, RELATING TO THE STATE REVOLVING FUND PROGRAM; PURSUANT TO SECTION 2.12(5) OF THE CITY CHARTER AUTHORIZING ONE OR MORE LOAN APPLICATIONS TO BE FILED WITH THE STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION IN A TOTAL AMOUNT NOT TO EXCEED EIGHT MILLION DOLLARS FOR PURPOSES OF FUNDING CERTAIN WASTEWATER AND STORMWATER IMPROVEMENT PROJECTS; AUTHORIZING THE LOAN AGREEMENT(S); ESTABLISHING PLEDGED REVENUES; DESIGNATING AUTHORIZED REPRESENTATIVES; PROVIDING ASSURANCES; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS, SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, Florida Statutes provide for loans to local government agencies to finance the construction of water pollution control facilities; and WHEREAS, Florida Administrative Code rules require authorization to apply for loans; to establish pledged revenues; to designate an authorized representative; to provide assurances of compliance with loan program requirements; and to enter into loan agreements; and WHEREAS, the State Revolving Fund loan priority list designates Project Number WW05050 as eligible for available funding; and WHEREAS, the City of Cape Canaveral, Florida, intends to enter into a loan agreement with the Department of Environmental Protection (hereinafter referred to as the "Department ") under the State Revolving Fund for project financing. NOW, THEREFORE, THE CITY OF CAPE CANAVERAL HEREBY ORDAINS AS FOLLOWS: SECTION 1. Recitals. The foregoing findings are incorporated herein by reference and made a part hereof. SECTION 2. Legal Authority. The legal authority for borrowing moneys to construct the projects is established in Chapter 166, Florida Statutes and Section 2.12(5) of the Cape Canaveral Charter. SECTION 3. Authorization. The City Council of the City of Cape Canaveral hereby authorizes City staff, on behalf of the City, to apply for one or more State of Florida revolving loans for point source water pollution control in the amount of approximately Eight Million Dollars ($8,000,000.00) to finance the preconstruction activities and construction of certain wastewater and stormwater improvements (hereinafter "Loan "). City of Cape Canaveral Ordinance No. 0 1 -2013 Page 1 of 5 SECTION 4. Establishing Pledged Revenues. The revenues pledged for the repayment of the Loan(s) are net sewer and stormwater utility system revenues after payment of operating and maintenance expenses of the systems and of debt service on any previous SRF loans of the City. SECTION 5. Description of Loan(s) and any Associated Notes. The Loan(s) and any associated Note(s) shall be dated the date of its execution and delivery, which shall be a date agreed upon by the City and the Department, subject to the following terms: (A) Interest Rate. The interest rate shall have a fixed interest rate not to exceed 3.25 %, subject to adjustment upon the occurrence of certain non or late payment events as expressly provided in the Loan(s) and any associated Note(s). (B) Principal and Interest Payment Dates. Principal and interest payments shall be made in accordance with the terms and conditions approved by the City Manager in the Loan Application(s). (C) Form of any Notes. Any Note(s) required by the lender shall be in form approved by the City Manager and City Attorney consistent with the terms and conditions of this Ordinance. SECTION 6. Designation of City's Lead Authorized Representative. The City Council of the City of Cape Canaveral hereby designates the City Manager as the City's lead authorized representative to provide the assurances and commitments required by the loan application(s). SECTION 7. Limitation of Rights. With the exception of any rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Ordinance or any notes executed in furtherance of this Ordinance are intended or shall be construed to give to any person other than the City and the Department any legal or equitable right, remedy or claim under or with respect to this Ordinance or any covenants, conditions and provisions herein contained; this Ordinance and all of the covenants, conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the City and the Department. SECTION 8. General Authority. The Mayor, City Manager, Assistant City Manager, City Attorney, and Finance Director of the City, or any of them, are hereby authorized, in connection with the Loan(s) and to do all things and to take any and all actions on behalf of the City; to execute and deliver any notes and documents; to provide disclosures concerning the City; and to finalize and close the transactions specified in all such agreements or arrangements (including any amendments or modifications thereof), including, without limitation, the execution and delivery of any and all documents and instruments deemed appropriate by any of such officers, and the making of any appropriate statements, representations, certifications and confirmations on behalf of the City, and in their respective capacities as officers thereof, necessary, appropriate or convenient to effectuate and expedite the consummation of the transactions specified herein, and any and all of the covenants, agreements and conditions of the City of Cape Canaveral Ordinance No. 0 1 -2013 Page 2 of 5 City; the approval of the City and all corporate power and authority for such actions to be conclusively evidenced by the execution and delivery thereof by any of such officers. SECTION 9. Execution and Authentication of Loan(s). The Loan(s), and any associated note(s), shall be executed in the name of the City by its Mayor and the corporate seal of the Issuer or a facsimile thereof shall be affixed thereto or reproduced thereon and attested by its City Clerk. The authorized signatures for the Mayor and City Clerk shall be either manual or in facsimile. Any Loan(s) and associated Note(s) may be signed and sealed on behalf of the City by such person as at the actual time of the execution of such Loan(s) and associated Note(s) shall hold the proper office, although at the date of such Loan(s) and associated Note(s) such person may not have held such office or may not have been so authorized. SECTION 10. Application of Proceeds. Proceeds received by the City from the Loan(s) shall be used to pay the costs incurred by the City for the preconstruction activities and construction of certain wastewater and stormwater improvements authorized by Section 3 of this Ordinance. The City Manager shall establish and create funds and accounts to maintain the loan proceeds and such funds and accounts shall be considered trust funds for the purpose provided herein for such funds. Moneys on deposit to the credit of all funds and accounts created hereunder may be invested pursuant to applicable law and the City's written investment policy and shall mature not later than the dates on which such moneys shall be needed to make payments in the manner herein provided. The securities so purchased as an investment of funds shall be deemed at all times to be a part of the account from which the said investment was withdrawn, and the interest accruing thereon and any profit realized therefrom shall be credited to such fund or account, except as expressly provided in this Ordinance, and any loss resulting from such investment shall likewise be charged to said fund or account. SECTION 11. Payment of Principal and Interest; Limited Obligation. The City promises that it will promptly pay the principal of and interest on the Loan(s) at the place, on the dates and in the manner provided therein according to the true intent and meaning hereof and thereof. The Loan(s) shall be secured by a pledge of and lien upon the Pledged Revenues in the manner and to the extent described herein. The Loan(s) shall not be or constitute general obligations or indebtedness of the City as a "bond" within the meaning of Article VII, Section 12 of the Constitution of Florida, but shall be payable solely from the Pledged Revenues in accordance with the terms hereof. No holder of the Loan(s) issued hereunder shall ever have the right to compel the exercise of any ad valorem taxing power or the use of ad valorem tax revenues to pay such Loan(s), or be entitled to payment of such Loan(s) from any funds of the City except from the Pledged Revenues as described herein. SECTION 12. Tax Covenant. The City covenants to the Department of the proceeds provided for in this Ordinance that the City will not make any use of the proceeds received hereunder any time during the term of the Loan(s) which, if such use had been reasonably expected on the date the Loan(s) was issued, would have caused such Loan(s) to be an "arbitrage bond" within the meaning of the Internal Revenue Code. The City will comply with the requirements of the Internal Revenue Code and any valid and applicable rules and regulations City of Cape Canaveral Ordinance No. 0l -2013 Page 3 of 5 promulgated thereunder necessary to ensure, to the extent applicable, the exclusion of interest on the Loan(s) from the gross income of the holders of the Loan(s) thereof for purposes of federal income taxation. SECTION 13. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Council, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. SECTION 14. Not Incorporated into Code. This Ordinance shall not be incorporated into the Cape Canaveral City Code. SECTION 15. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 16. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Council of the City of Cape Canaveral, Florida. ADOPTED by the City Council of the City of Cape Canaveral, Florida, this 19thday of February , 2013. ATTEST: : 'J Ange,a A -Apper n; Assistalf'�irtylC�Iana yCi Clerk Approved as to Form and legal sufficiency for the City of Cape Canaveral only: Anthony A. Garganese, City Attorney Rocky Randels, Mayor Name John Bond Bob Hoog Buzz Petsos Rocky Randels Betty Walsh City of Cape Canaveral Ordinance No. 0 1 -2013 Page 4 of 5 For Against Motion Second X X X First Reading: January 15, 2013 Legal Ad Published: January 24, 2013 Second Reading: February 19, 2013 City of Cape Canaveral Ordinance No. 0 1 -2013 Page 5 of 5